In a significant step toward advancing renewable energy adoption in South Africa, SolarAfrica has successfully secured over $97 million (R1.8 billion) in funding for the first phase of its flagship utility-scale solar project, SunCentral.
In a press release on Monday, the company said the investment is supported by funding partners Investec and RMB, and will mark a major milestone in the development of what is set to become one of the country’s largest solar photovoltaic (PV) plants.
Located between Hanover and De Aar in the Northern Cape province, SunCentral will be developed in three phases, with the first phase comprising 342 MW delivered through three 114 MW facilities.
Charl Alheit, SolarAfrica’s Chief Investment Officer, who led the financial close, emphasized the importance of this milestone.
“Reaching financial close on the first 114 MW of our utility-scale wheeling development and Main Transmission Substation (MTS) investment underscores our commitment to advancing sustainable energy solutions for our customers,” he said.
The project will utilize South Africa’s power grid to wheel renewable energy to a diverse range of commercial and industrial customers, offering a unique one-to-many wheeling model.
“The scale of SunCentral will unlock access to cheaper, greener power for businesses across South Africa, contributing to the country’s energy transition while delivering long-term value”, Alheit said.
Unlike traditional one-to-one wheeling arrangements, where a single generation plant supplies one off-taker, SolarAfrica’s approach will enable multiple businesses to access clean energy, significantly broadening its impact.
Once fully operational, SunCentral is expected to reach a total capacity of 1 gigawatt(GW), making it a cornerstone of South Africa’s renewable energy push.
The project is part of SolarAfrica’s broader mission to expand clean energy adoption across Sub-Saharan Africa, under the umbrella of the Starsight Energy Africa Group.
Paul van Zijl, Group CEO of Starsight Energy Africa Group, highlighted the project’s significance. “The construction of SunCentral is a critical step in our journey to expand clean energy adoption across the region,” he said.
“We are excited to move this project forward and continue delivering long-term value to our customers.”
SolarAfrica’s efforts are backed by world-class investors, including African Infrastructure Investment Managers (AIIM) and Helios Investment Partners, both of which have a proven track record of supporting African innovation.
Thor Corry, Investment Director at AIIM, praised the project’s modular approach, which allows for scalability and efficiency. “The modular construction of the MTS and subsequent 114 MW modules provides a superb platform for SolarAfrica to scale rapidly and meet the needs of commercial and industrial customers,” he said.
“With South Africa requiring up to 30 GW of new capacity by 2030 to meet its climate commitments and energy needs, projects like SunCentral are absolutely crucial”, Corry noted.
As South Africa grapples with energy shortages and the urgent need to transition to cleaner energy sources, SolarAfrica’s SunCentral project represents a beacon of hope.
By offering a scalable, innovative wheeling model, the project not only addresses immediate energy demands but also paves the way for a more sustainable and resilient energy future for the country and the broader region.
Meanwhile, the project is the latest solar energy investment in the country after Amsterdam-based renewable energy firm, Photon Energy Group, announced the development of a 250-megawatt (MW) concentrated solar Pv plant integrated with 150 MW/1.8 GWh of thermal hydro storage in Winterton, KwaZulu-Natal.
So far, South Africa has committed to a $82 billion (1.5 trillion rand) plan over five years to develop renewable energy, green hydrogen, and electric vehicle industries.
